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Subject:  Re: Roth IRA ....Still tax free after 30 years? Date:  9/21/1998  3:43 PM
Author:  shess Number:  5529 of 96328

xxdustyxx wrote:
<<I'm 27 and seriously considering converting my regular IRAs to Roths. How do I know whether the tax free withdrawal provision written into the Roth IRA Law will still be in effect in 30+ years? The regular IRA used to be tax deductible for everyone, now deductability is based on income.>>

Worse, now you can be hit with fairly punitive taxes on IRA withdrawals - and they also have rules which _force_ withdrawals, so you can make the choice between being punished for saving too much, or being punished for not withdrawing enough!

I tend to agree with those that think that in the withdrawal phase of a Roth-IRA, it's pretty unlikely that you'll be taxed, since that would be double-taxation. Against that theory, we have taxation of SSC benefits.

All of which leads me to my main assumption - that I can't assume anything about things so far in the future (I'm only 29). So my wife and I are putting $2k towards our Roth this year since income prevents us from using a regular IRA. But our rollover and SEP IRAs will continue as they are.

If things stay _exactly_ as they are for the next 60 years, we can expect to live off our non-Roth IRAs, paying taxes, while leaving a tiday tax-free sum to our heirs via the Roth. If Congress screws up the Roth, well, so be it.

[And you never know - what with all those baby boomers soon to start dipping into their IRAs, perhaps Congress will change the distribution phase of the non-Roth IRA for the better. Stranger things have happened.]


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